Replies to post #77569 on Plastic2Oil Inc (PTOI)

[flptrnkng]

But they were just buying assets of Data, not Data itself

Buying the stock of a company for a multiple of book value happens all the time.

Buying an asset should happen at what the asset is worth, not some arbitrary multiple.

If they had bought an asset from an unrelated company for 3 times what it was worth, you could call that misfeasance.

Since they control both sides of the transaction, it becomes something murkier in my eyes.

[callthebank]

No!! We all like doing that when we are buying a car don't we?

You really thought paying higher than book value for something is rare?

[jjsmith]

Another BOMBSHELL. As I always suspected, the tape business was represented as a huge money maker even though it never was. John Bordynuik, actually filed an 8K under Expedite 2, inc were he claimed that he expected the tape business to have $450K of REVENUE PER MONTH. Since the tape business lifetime revenues were less than $250K how could he have reasonably expected to have revenues of $450K PER MONTH? That my friends is a HUGE BOMBSHELL. Can't wait for his explanation of how he came up with numbers like that that never even came close to materializing. I bet P2O will end up just like the tape business, except the CEO has yet to file an outrageous 8K about P2O like he did on the tape business, yet facebook posts, private emails and interviews have similar outrageous claims for P2O like the 2,500 machines operating in "a few years".

Now we know why Pakit and Javaco sold out to JBI. They must have saw this 8K and beleived the tape business was a huge money maker and/or the CEO told them it was a huge money maker that it clearly wasn't. It all makes sense now. Unbelievable!
http://www.sec.gov/Archives/edgar/data/1415602/000121390009000261/f8k021009_expedite2.htm
"The following is a summary of the expected revenue and costs resulting from the production of 18,000 tapes/month (one truckload):


Revenue:
Per tape cost to customer to recover data (volume order of 18,000 tapes/month) is $25/tape.
Per tape cost to customer to shred tape (volume order of 18,000 tapes/month). JBI can read one tape every 15 minutes per drive.


Total cost to customer: $25/tape
JBI costs incl. expenditures/tape (1 shift): $14/tape
Total revenue/18,000 tapes: $450,000.00
Gross Profit per truckload of tapes: $198,000.00"

LOL....I suggest you read up on what book value is and look at yahoo finance and see how many companies trade for multitudes higher than their book value then do a search for acquisitions and see how many are bought for multitude higher than their book value.

You really thought paying higher than book value for something is rare? lol

"Since companies are usually expected to grow and generate more profits in the future, market capitalization is higher than book value for most companies."
http://www.investorwords.com/549/book_value.html#ixzz15kFg7yoT

Example:

Average Technology stocks trade at 36 times book value:
Average business software stocks trade at 9 times book value:

http://biz.yahoo.com/p/826conameu.html

And you're screaming fraud because the assets were paid for at a price of less than 3 times book value? ROFL!!!!!!

I guess the entire technology sector is a fraud 12 times bigger then.